MINISTER OF THE STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI MAHABIR PRASAD)
(a) to (c): The global recession has adversely impacted the Indian economy,including the micro,
small and medium enterprises (MSMEs).While there is no separate information on MSMEs,as per the
sample survey conducted by the Ministry of Labour and Employment,about 5 lakh workers are
estimated to have lost their jobs during October-December 2008. The most affected sectors
were Gems and Jewellery, Transport and Automobiles.
(d) to (f): Keeping in view the impact of global recession on MSME-s,the Government,the Reserve
Bank of India (RBI) and the Public Sector Banks ihave taken several measures for protecting and
providing a stimulus to the MSMEs which, inter alia, include: (i) extending the loan limit under
Credit Guarantee Scheme from Rs.50 lakh to Rs.l crore with a guarantee cover of 50 per cent;
(ii) increasing the guarantee cover under Credit Guarantee Scheme from 80 per cent to 85 per cent
for credit facility up to Rs.5 lakh; (iii) an advisory to Central Public Sector Enterprises to
ensure prompt payment of bills of MSMEs; (iv) interest subvention of 2 per cent in pre and post-
shipment export credit to small and medium enterprises (SME) sector up to 31.3.2009; (v) refinance
limit of Rs.7,000 crore to Small Industries Development Bank of India (SIDBI) for incremental on-
lending to the micro and small enterprises (MSB) sector; (vi) grant of need-based ad hoc working
capital demand loans up to 20 per cent of the existing lund-based limits; and (vii) reduction in
interest rates for borrowing by micro enterprises by 1 per cent and in respect of SMEs by 0.5 per
cent. The details of credit flow to enterprises (including MSMEs) is collected by the RBI through
the banking system and published on an annual basis. An indication of the credit flow to the MSMEs
in the period after the package will, therefore, be inferable from the RBI`s report for the year
2008-09.